Riding on the current prosperity boom of the shipbuilding industry, South Korean shipbuilder Sungdong Holdings has announced a partnership with UAE-based private professional investment firm Quazar Investment to build a large-scale smart digital twin shipyard in Abu Dhabi, the United Arab Emirates.
Sungdong Holdings recently announced that its founder, Jung Hong-jun, has reached an agreement with Quazar Investment to build a world-class smart digital twin shipyard in Abu Dhabi, UAE. Quazar Investment is an investment company founded and operated by financial and business advisors to the UAE royal family. In addition to building the new shipyard, the UAE also intends to acquire a South Korean shipyard.
Sungdong Holdings stated that the proposed smart digital twin shipyard project has a total investment of up to US$3.5 billion (approximately RMB 23.8 billion). The project is fully funded by Quazar Investment and technical support is provided by the Korean corporation Sungdong Holdings (Sungdong ISET). The two parties hold 70% and 30% equity in the shipyard, respectively, and Sungdong Holdings is responsible for the construction management and subsequent operation of the shipyard.
Seongdong Holdings stated that the proposed smart digital twin shipyard project has a total investment of up to US$3.5 billion. The project is fully funded by Quazar Investment and technical support is provided by the Korean corporation Seongdong Holdings (Seongdong ISET). The two parties hold 70% and 30% equity in the shipyard, respectively, and Seongdong Holdings is responsible for the construction management and subsequent operation of the shipyard.
The shipyard project is located in KEZAD, within the Abu Dhabi Free Economic Zone, covering a total area of 8 million square meters. The shipyard will be equipped with cutting-edge automated systems such as artificial intelligence (AI) robots and drones. Construction is expected to begin in July 2027 and be completed in September 2028.
It is worth noting that the shipyard project will reportedly utilize the “Ground Typhoon System (GTS)” developed by Jung Hong-jun, replacing traditional dry-dock construction methods. This method involves constructing the ship on land and then launching it using a special mobile system, which improves space utilization and construction efficiency.
It is understood that Jung Hong-jun previously founded Sungdong Shipbuilding & Marine Engineering (now HSG Sungdong Shipbuilding) in Tongyeong, Gyeongsangnam-do, South Korea. This shipyard previously primarily built oil tankers and in 2007 its order book ranked among the top ten shipyards globally. However, due to the global financial crisis and deteriorating liquidity, it ultimately entered bankruptcy reorganization.
Fortunately, during Sungdong Shipbuilding & Marine Engineering’s bankruptcy, its core assets were preserved, including a 360,000-square-meter large dry dock, a 2-kilometer-long quay, and a 900-ton crane, all of which remain operational. In 2020, Sungdong Shipbuilding & Marine Engineering was acquired by HSG Heavy Industries and renamed HSG Sungdong Shipbuilding. In recent years, HSG Sungdong Shipbuilding has not received any full-ship orders from shipowners, and its shipbuilding business remains primarily focused on building hull sections.
Regarding the shipyard project with Quazar Investment, Jung Hong-jun stated, “This cooperation marks a significant turning point for the Korean shipbuilding industry as it moves towards becoming a technology exporter. The company will help enhance the competitiveness of the Korean shipbuilding industry by acquiring and integrating several small and medium-sized shipyards in Korea.”